Israel Seizes $1.5B in Tether Allegedly Linked to Iran
Israel’s Ministry of Defense ordered the seizure of 187 cryptocurrency wallets, alleging they have been utilized by Iran’s Islamic Revolutionary Guard Corps (IRGC).
The transfer highlights the growing use of cryptocurrency in sanctioned states. It comes days after the US Justice Department seized $584,741 in USDT from an Iranian nationwide tied to the IRGC’s drone program.
$1.5B in Crypto Wallets Seized by Israel
Israel’s National Bureau for Counter Terror Financing (NBCTF) and Defense Minister Israel Katz introduced Monday the seizure order towards 187 wallets, citing authority beneath the Anti-Terrorism Law of 2016. Officials stated the wallets as soon as processed $1.5 billion in Tether however now maintain about $1.5 million.
Katz wrote in the Administrative Seizure Order that the funds have been both the property of the IRGC or “used for the perpetration of a extreme terror crime.” The IRGC stays designated as a terrorist group by Israel, the US, the European Union, Canada, and the United Kingdom.
Blockchain analytics agency Elliptic built-in the seized addresses into its monitoring system. This permits exchanges and establishments to display transactions. Elliptic confirmed the wallets acquired the funds, however famous that not all could also be immediately managed by the IRGC.
“Some of the addresses could also be managed by cryptocurrency providers and may very well be a part of pockets infrastructure used to facilitate transactions for a lot of prospects,” Elliptic famous.
Tether, issuer of the $110 billion-plus market cap stablecoin, blacklisted 39 of the wallets on September 13, blocking additional transactions. The firm has a historical past of cooperating with regulation enforcement by freezing funds tied to illicit finance, a follow enabled by USDT’s centralized management construction.
A Broader Crackdown on IRGC’s Expanding Crypto Use
The Israeli move is the newest in a sequence of worldwide actions focusing on the IRGC’s crypto networks. The IRGC has confronted repeated allegations of utilizing cryptocurrency to skirt sanctions. In June, pro-Israel hacking group Gonjeshke Darande drained $90 million from Iranian alternate Nobitex, accusing it of IRGC hyperlinks.
In December 2024, the US Treasury sanctioned addresses tied to Sa’id Ahmad Muhammad al-Jamal. He had funneled $332 million in USDT to Yemen’s Houthi motion with IRGC help.
Last week, the US Attorney’s Office in Massachusetts filed a civil forfeiture motion towards Mohammad Abedini. They seized $584,741 in USDT related to the IRGC’s drone program.
Analysts warn that the newest seizures underscore how cryptocurrencies—whereas clear and traceable—can serve sanctioned states searching for liquidity.
“Rumors of IRGC utilizing cryptocurrency to circumvent sanctions have continued for years,” stated Amir Rashidi, director on the Iran-focused nonprofit Miaan Group. “Some circumstances might contain exchanges in a roundabout way a part of the IRGC however related by complicated monetary networks.”
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